The Tories are considering implementing a series of pre-election giveaways, including measures aimed at supporting first-time buyers and eliminating inheritance tax, according to reports.
Amidst plummeting poll numbers for the Tories and an imminent election expected next year, the Times said the government intends a reduction in the initial expenses associated with purchasing a home for first-time buyers.
Housing Secretary Michael Gove, speaking to the paper, confirmed the party’s commitment to introducing a new offer before polling day, stating it would be “definitely” in place, The Guardian reported.
One potential initiative reportedly under consideration involves a scheme to extend government support for more extended fixed-term mortgages, similar to those available in the US, a move that aims to alleviate the deposit requirements for first-time homebuyers.
Gove said, we have been asking the question, of how we can enable individuals with adequate incomes, who face challenges due to the substantial deposit size, to get onto the housing ladder.
“I don’t want to pre-empt anything … but it’s about looking at some of the rigidities in the mortgage market which they haven’t got in other jurisdictions.”
Reportedly, alternative options being considered involve reintroducing a modified iteration of the Help to Buy scheme, which closed last year. The earlier scheme facilitated the purchase of new-build properties by providing a government loan, requiring only a 5% deposit.
According to the government, the plan will either be unveiled during the March budget or integrated into the Conservative manifesto.
In a separate report, the Telegraph said that Downing Street is contemplating a reduction in inheritance tax within three months.
The report suggests that the elimination of inheritance tax is unlikely to be matched by Labour, potentially establishing a tax “dividing line” sought after by Tory election strategists.
Conservative Members of Parliament have expressed support for the reported action, with one labelling inheritance tax as “immoral.”
The report in the Telegraph, advocating for the abolition of inheritance tax, acknowledges that only 4% of households are subject to it, and eliminating it entirely would incur an annual cost of £8 billion.
Insiders from the Conservative Party involved in formulating the set of measures for the March budget suggest that this budget is likely to serve as the final fiscal statement preceding the upcoming election, intending to appeal to voters.
Following his autumn statement, Jeremy Hunt mentioned avoiding “crowd-pleasing taxes” for a pre-election giveaway, emphasising the government’s “long-term goal” of boosting the economy.
However, the chancellor has faced pressure to announce tax reductions. The freeze on income tax thresholds has resulted in millions of individuals entering higher tax bands over the past two years.
